Sweeten your IRA

Have you ever tried to pour coffee before it is done percolating? The result is usually coffee everywhere! Even if you avoid spills, your coffee just won’t taste right if it hasn’t finished brewing.

T here are other times in life when we may be forced to take something sooner than desired. An example of this is the required minimum distribution (RMD) from your IRA. Did you know that once you reach 70½, the government will require you to take distribution from your IRA, even if you do not need the money or might think it better to preserve your IRA for something important, such as a rainy day? The RMD could also substantially increase the taxes you have to pay on your income.

If you are faced with an RMD this year, consider a better use for the funds. Make a gift of your RMD (up to $100,000 this year) directly to charity. Contact your IRA administrator and ask for the forms to make a charitable transfer to support our mission. The transfer counts against your RMD, but because you never received the IRA distribution, you will not be taxed on this amount.

Rather than pay income tax on your required minimum distribution, transfer the funds to charity instead.

While this helps with your immediate RMD concerns, consider amplifying your annual gift with a legacy gift. Your IRA rollover gift can be combined with a bequest made in your will or additional IRA beneficiary designation gift to make an even greater difference. By giving directly from your IRA today and supplementing it with a bequest, you can make your giving go further by giving when the timing is right for you.

Take a Turn in the Right Direction

Experts say we will soon “drive” self-driving cars that can take us where we want to go while allowing us to sit back and sleep, play chess, read or do anything else that helps us relax.

While that may be the future, most people are not ready to turn over control and trust self-driving cars. Can a self-driving car get you where you want to go? Will it stay on the road? How will it handle something unexpected?

When it comes to our future and the safety and care of loved ones, many of us would not relinquish control to a car that was on auto-pilot. What if it did not work as intended? Yet, when it comes to our finances, healthcare and our estate plan, many of us have freely chosen to give up control to a system that is random and ill-equipped to make the kind of decisions we can best make ourselves. Under state law, if you are incapacitated or pass way without a plan someone else will make important decisions that could affect you and your loved ones.

For example, if you die without a will or trust, a court will determine how your assets are distributed and that may happen in a way that does not reflect your wishes.

Don’t leave your legacy to chance. It’s easier than you might think to write a will and provide for the people and causes that mean the most to you.

We can help you gather the information necessary to create your plan using our estate planning guide. Contact us to request your free guide. Also, let us know if you plan to include our organization
in your estate plans so we can make sure your  gift goes to help the causes that mean the most to you.